Is the BT share price (LON:BT.A) good value at 200p?
BT (LON:BT.A) is a large cap in the Telecommunications Services industry. The Company operates in four segments: Global Services, Enterprise, Consumer and Openreach.
For the fiscal year ended 31 March 2019, BT Group plc revenues decreased 1% to £23.46bn but net income increased 6% to £2.16bn. The BT share price appears to represent solid value right now, as shown in the group's Value Rank of 72. Let's explore this in more detail.
Digging into BT's Value Rank
Looking at BT's StockReport, we can see that the group has a:
- Rolling price to book value of 1.96,
- Trailing twelve month price to earnings ratio of 7.09
- Trailing twelve month price to free cashflow of 34.4
- Rolling dividend yield of 7.57%
- Trailing twelve-month price to sales ratio of 0.85
This combination of financial traits suggests that, while BT stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.
What does this mean for potential investors?
Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with BT that you can find out about here.
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